Gold Prices Gain In Asia As Safe Haven Demand Grows on Stocks Rout – Gold prices gained in Asia on Tuesday as safe-haven demand for the precious metal came to the fore following a rout in US stocks that carried over into the region and sent Tokyo down as much as 5%,Overnight, gold prices remained under pressure as the dollar moved off lows after services data topped economists’ forecasts reaffirming investor expectation that bullish economic growth would strengthen the Federal Reserve’s case to raise rates more aggressively. Scotia bank said that upbeat ISM non-manufacturing data was a “strong plus for growth and the components are hawkish to the Federal Open Market Committee.” In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds. Gold suffered its biggest weekly loss since December last week as data showed traders appear wary of increasing their bullish bets on gold.
Zinc prices dropped as prices remained under pressure as the dollar index gained ground following strong US data – Zinc on MCX settled down -1.29% at 226.4 as prices remained under pressure as the dollar index gained ground following strong US data. Growth in China’s manufacturing sector remained elevated in January, a private survey showed, though it contrasted with an official survey pointing to a slight loss of momentum. Preliminary data recently compiled by the ILZSG, the global market for refined zinc metal was in deficit by 401-kilotonne over the first ten months of 2017 with total reported inventories declining by 282-kilotonne over the same period. World zinc mine production rose by 3.8% mainly as a result of increases in Eritrea, India, Peru and Turkey that more than balanced falls in Australia and the United States. Global output of refined zinc metal contracted by 0.6%. The gap between sister metals zinc and lead were expected to continue to narrow with lead saw extending gains on shortages and zinc pulling back slightly since it had already had a strong rise. South Korea is seeking to buy 500 tonnes of zinc for arrival in April and May via separate tenders, state-run Procurement Service said.
Oil prices slump 1 percent amid global market rout – Oil prices dropped by 1 percent on Tuesday, extending falls from the previous session as global financial markets headed south in the wake of one of the biggest intra-day falls ever registered on Wall Street.Financial markets went into a tailspin on Monday when U.S. stocks plunged in highly volatile trading which saw the Dow Jones Industrial Average (DJI) tumbled by almost 1,600 points in intra-day trading, its biggest ever point-to-point loss within one trading session, as investors grappled with rising bond yields and potentially firming inflation.Despite efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to withhold production since January last year in order to tighten the market and prop up prices, crude supplies remain relatively ample.
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